Pathao, the market leader of Bangladesh’s two-wheeler ride-hailing industry, has closed a new round of fundraising that values the company at over $100 million, said a press release sent to Future Startup.
The Dhaka-based ride-sharing platform introduced moto-taxis to the densely populated country in 2017, and customers have quickly adopted the new transportation alternative.
Pathao completes over one million rides and fulfills over hundred thousand deliveries each month. The company also launched courier, car ride-sharing, and food delivery services, which are also rapidly gaining popularity among the country’s citizens. All of these services can be accessed from a single app.
In November 2017, Indonesia’s most prominent technology business GO-JEK led the first significant round of Series A capital venture financing for Pathao, resulting in rapid growth in multiple verticals.
GO-JEK has increased its investment in this latest pre-Series B round, which includes other existing investors, including Openspace Ventures (formerly NSI Ventures), Osiris Group and Battery Road Digital Holdings.
“Pathao has a relentless focus on improving lives of customers, and providing a real opportunity for drivers to earn a living wage”, said Pathao co-founder and CEO Hussain M Elius. “We could not have achieved what we have, without the contribution of our loyal customers and drivers, and our execution-oriented team. We are proud to have GO-JEK be a part of our story, as we aspire to make Pathao the biggest service platform in Bangladesh.”
This latest financing makes Pathao the fastest growing and largest tech company in Bangladesh.
In Dhaka, the capital city of Bangladesh, congestion is nearing a breaking point, with 25,000 people in every square kilometer. Pathao’s expanding line of on-demand services allows Dhaka inhabitants to beat the traffic and increases productivity levels.
Forecasts for the fiscal year 2017-18 show Bangladesh experiencing a period of formidable economic growth. With a 7.65 percent growth in GDP (as estimated by the Bangladesh Bureau of Statistics), it stands strongly among the leading South Asian countries. However, unemployment problems still plague Bangladesh.
Pathao has injected much-needed speed into the lives of the people in a country which has, according to The World Economic Forum, some of the worst road infrastructure in the world.
With the advent of Pathao, a flexible and reliable source of income has been created for thousands of people. Some of the Pathao drivers consider it a convenient way of making extra money, augmenting earnings from their day jobs.
Pathao has grown exponentially in the past year. The company employs over 500 people in 22 cities all over Bangladesh.